MNI POLICY: BOJ Kuroda: To Eye Risks, Take Appropriate Policy

     TOKYO (MNI) - The BOJ is closely watching how overseas developments affect

Japan's economy and prices and will take appropriate policy action as needed,

Bank of Japan Governor Haruhiko Kuroda said Tuesday.

     "Downside risks to the global economy are big on the back of the trade

friction between the U.S. and China, and the (sluggish) Chinese economy," Kuroda

told lawmakers.

     "We are closely watching how developments of overseas economies affect

(our) economy and prices, including the momentum toward hitting the 2% price

target, and will take appropriate policy," Kuroda said.

     However, the governor didn't elaborate on how or what kinds of policy the

BOJ would take if risks materialize. Kuroda added that the policymakers will

discuss the downside risks to the economy at the two-day policy-setting meeting

starting on Wednesday.

     The BOJ board is expected to stand pat on monetary policy this week as

Japan's economy is still seen expanding moderately, despite the intensified

downside risks. 

--MNI Tokyo Bureau; tel: +81 90-2175-0040; email: hiroshi.inoue@marketnews.com

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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